What is GST on renting of commercial property?
GST at 18% is applicable on the rental income earned from letting out commercial properties in India. This applies when a property owner (landlord) rents out commercial space such as offices, shops, warehouses, or showrooms to a business or individual for commercial use.
Key GST Rules for Commercial Property Rental
- Renting commercial property (office, shop, warehouse): GST applicable at 18%.
- Renting residential property for commercial use: GST applicable at 18%.
- Renting residential property for residential use: Nil.
- Renting to government/charitable body: Special rules apply varies.
Who is Liable to Pay GST on Rent?
- If the landlord is GST-registered and annual rental income exceeds ₹20 lakh (₹10 lakh in special category states): Landlord charges GST on rent and files returns.
- If the landlord is NOT GST-registered but the tenant is a GST-registered entity: Reverse Charge Mechanism (RCM) applies tenant pays GST on behalf of landlord.
GST at 18% on commercial property rentals is a significant compliance requirement for both landlords and tenants. RCM provisions ensure GST is collected even when landlords are unregistered, while businesses can recover the tax through ITC.
Similar Blogs
Technology and Innovation
Evolution of Customer Relationship Management tools
‘‘The purpose of a business is to create and keep a customer’’, Peter Drucker, a famous writer, and management consultant said prolifically. The realm of CRM scope covers customer discovery, interactions, service, care, retention, and loyalty. The term Customer Relationship Management (CRM) was c
PropTech Pulse Editorial
12th April 2024
Technology and Innovation
Gen AI and the Changing Landscape of CRM
‘‘The purpose of a business is to create and keep a customer’’, Peter Drucker, a famous writer, and management consultant. Every business, lives, profits and grows with this mantra. Business that succeeded across all the previous industrial revolutions including mechanisation, electrification, aut
PropTech Pulse Editorial
25th April 2024
Technology and Innovation
Gen AI in CRM: Revolutionizing Customer Experience, Marketing, and Sales
‘‘The purpose of a business is to create and keep a customer’’, Peter Drucker, a famous writer, and management consultant. Every business, lives, operates, and thrives with this mantra. Customers today, in addition to goods and service also want convenience, self-service and personalisation. They
PropTech Pulse Editorial
21st May 2024
Technology and Innovation
Evolution of Customer Relationship Management tools
‘‘The purpose of a business is to create and keep a customer’’, Peter Drucker, a famous writer, and management consultant said prolifically. The realm of CRM scope covers customer discovery, interactions, service, care, retention, and loyalty. The term Customer Relationship Management (CRM) was c
PropTech Pulse Editorial
12th April 2024
Technology and Innovation
Gen AI and the Changing Landscape of CRM
‘‘The purpose of a business is to create and keep a customer’’, Peter Drucker, a famous writer, and management consultant. Every business, lives, profits and grows with this mantra. Business that succeeded across all the previous industrial revolutions including mechanisation, electrification, aut
PropTech Pulse Editorial
25th April 2024
Ask Pulse Ai anything about real estate
Unlock the Latest in Real Estate
News, Infographics, Blogs & More! Delivered to your inbox.
